'We need to fix the federal safety net': American boomers own a staggering 50% of US wealth — but they’re becoming homeless at an alarming rate. What gives?

“We need to fix the federal safety net,” University of Pennsylvania social policy professor Dennis Culhane says in an interview with the Wall Street Journal.

“We should not have destitute elderly or disabled people in the richest country on Earth.”

Younger boomers in peril

Federal data shows more than one in five Americans facing homelessness last year were aged 55 or older. Experts say this group makes up the fastest-growing segment of the unhoused population.

Culhane’s research indicates younger boomers have actually made up about a third of the homeless population for decades, especially after a resurgence in homelessness in the 1980s.

Why? Part of the problem is that the second half of the boomer generation grappled with major hurdles as they came of age.

“They faced a very crowded housing market, prices were escalating,” says Culhane. “Young adults, in particular, faced the challenge of getting entry into the labor market.”

To make matters worse, the crack epidemic in the 1980s impacted many of this cohort, leading them to struggle with homelessness and remain at risk as they aged as well.

The other issue is that many folks worked in jobs that didn’t contribute to Social Security, such as in casual construction and demolition work, making them ineligible for these benefits in retirement.

“Sometimes, if you miss a window by even five years, 10 years, you’re looking at a very different housing market or you’re looking at a very different labor market — and it takes time to catch up,” says Redfin senior economist Chen Zhao.

Few housing options available

Older boomers hold a significant slice of the real estate market pie, since they were able to purchase homes for cheaper prices when they were younger. Consequently, that group is more likely than others to have paid off their mortgages already.

The high prices and interest rates of today mean many are choosing to age in place — exacerbating the housing shortage.

“They feel a connection to the community,” says Zhao, adding that some feel financially “stuck” with their homes.

“It’s especially acute of a problem right now because millennials are kind of at a prime homebuying time in their lives — and the millennial generation is a very large generation.”